BlackRock Inc. (NYSE:BLK) U.S. head of equity ETFs Jay Jacobs on Wednesday said that despite billions in inflows, crypto ETFs remain in their early days as financial advisors only recently gained platform access.
Financial Advisors Just Getting Access To Crypto ETFs
Jacobs told CNBC’s “ETF Edge” that many investors are still starting their educational journey on what Bitcoin (CRYPTO: BTC) is and how it fits in a portfolio.
The bigger shift is unfolding among financial advisors who previously lacked access to crypto or were unable to buy the iShares Bitcoin Trust ETF (NASDAQ:IBIT) until their platforms approved it.
As a result, BlackRock is seeing a broader group of people who can now invest in crypto and are interested in the asset class.
At the same time, the firm is emphasizing education, focusing on how crypto behaves across different market environments and how it can sit alongside stocks and bonds in a diversified portfolio.
IBIT launched less than two years ago and has accumulated tens of billions in assets, but Jacobs emphasized the adoption curve is just beginning for both retail and institutional investors.
Investors Held Through 2025 Volatility
Todd Rosenbluth, director of research at VettaFi, pointed to 2025 as proof that ETF-wrapper crypto investing has staying power.
IBIT saw price volatility and finished down for the year but still had one of the best years in terms of asset gathering.
Rosenbluth said this shows investors moving into crypto through the ETF wrapper have loyalty to the product and confidence in long-term trends.
They’re not moving in or out based on volatility, which suggests advisors are offering crypto as a portfolio allocation and sticking with it rather than trading around price swings.
The pattern differs from direct crypto holders who tend to trade more actively. ETF investors appear to be treating Bitcoin and Ethereum (CRYPTO: ETH) as long-term allocations rather than tactical trades.
Why This Matters For Crypto Markets
The institutional adoption narrative has driven much of crypto’s 2024-2025 rally, but BlackRock’s comments suggest the actual flow of advisor and institutional capital is still ramping up.
Platform approvals and compliance processes take time, meaning the bulk of advisor adoption may still be ahead.
If Jacobs is correct that crypto ETFs are in “very early days,” the implication is that inflows could sustain for years as more advisors complete their due diligence and allocate client capital.
This creates a potential bid under crypto markets that’s less sensitive to short-term price volatility.
The counterpoint is that “early days” also means crypto ETF adoption could stall if education efforts fail or if advisors decide the volatility doesn’t fit client risk profiles.
The staying power Rosenbluth observed in 2025 will face another test when the next major drawdown hits.
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